Tips for Buying Investment Property
If you’ve been thinking about investing your money in property rather than the volatile stock market, there are lots of great opportunities to buy.
Market conditions are ideal with stagnant home and commercial prices, lots of inventory, and historically low interest rates. All pave the way for plenty of bargains. Before you begin your search for investment property, hear are some tips to increase your chances of making a successful purchase:
Buying investment property - tips for success:
- Put in the legwork
You are investing with a lot of money, so don’t take unnecessary risks by winging it. Do your research to determine market values and future potential.
- Ensure your finances are in order
Speak with your bank loan officer before you begin searching for commercial properties and viewing open homes. The right time to buy is when you have your finances in order.
- Buy where tenant demand is greatest
Look for properties close to workplaces, transport, and shopping where the majority of workers would rent. Suburbs close to business districts and leisure facilities are the places working professionals will always wish to live in, so as an investor, you’ll rarely have any problems leasing the property.
- Invest for the long term
As an investor, you want to be in the market for the long term. Look for quality properties that will always be in demand, rather than hoping to cash in on the ‘next big thing’.
The combination of low interest rates with the long-term potential for strong yields present the ideal conditions to invest in property now. Minnesota National Bank’s lending team offers great options for commercial and residential loans. Contact us today to discuss your goals and get pre-qualified.